At the time, former retail executive Doug Stephens, who runs the blog The Retail Prophet, explained how it was a grave mistake.

"One only has to look as far as brands like Coach or Michael Kors to see the dangerous opiate that off-price distribution can become," Stephens told Business Insider. "The volume outlet malls promise is compelling but the collateral damage to the brand — particularly among loyal full-price customers — is often next to irreparable."

When customers get used to finding discounts on a certain brand's products, it begins to erode that brand's premium positioning. In other words, customers aren't willing to pay full price anymore.